Aykan Acar Ergönen Law Firm updates

Capital contributions in joint stock companies
Aykan Acar Ergönen Law Firm
  • Company & Commercial
  • Turkey
  • July 24 2017

Under the Commercial Code 6102, shareholders must contribute capital to commercial companies incorporated by law (the so-called 'contribution obligation'). A contribution obligation mainly arises at the time of the incorporation of or the capital increase in a commercial company. Shareholders generally prefer fulfilling their contribution obligations in cash and their liability is limited to the amount that they subscribed for under a company's articles of association.

New communique on signing articles of association before trade registries
Aykan Acar Ergönen Law Firm
  • Company & Commercial
  • Turkey
  • February 06 2017

Following the entry into force of the Law Introducing Several Amendments in Different Laws to Improve the Investment Environment in August 2016, the Communique Regarding the Signing of the Articles of Association Before the Trade Registries has now taken effect. The communique sets out the procedures to be followed when incorporation documents are signed or executed before the trade registries.

Changes to Commercial Code aim to improve investment environment
Aykan Acar Ergönen Law Firm
  • Company & Commercial
  • Turkey
  • September 12 2016

Amendments were recently introduced to the Commercial Code with the aim of fostering investment in Turkey following recent political instability and the resulting uncertainty among investors. The amendments to the Commercial Code seek to expedite incorporation procedures for companies, reduce the relating notary public costs and foster transparency.

Attorney obligation for joint stock companies
Aykan Acar Ergönen Law Firm
  • Company & Commercial
  • Turkey
  • September 05 2016

Under the Attorneyship Law, joint stock companies with a share capital of TRY250,000 or more must have an attorney; violation of this legal obligation will result in significant administrative fines imposed by public prosecutors. Compliance with the law is recommended not only to avoid administrative fines, but also to ensure that companies and their operations are built on legally supported and evaluated grounds.

Law on mandatory use of Turkish by commercial enterprises still applied
Aykan Acar Ergönen Law Firm
  • Company & Commercial
  • Turkey
  • August 29 2016

Under the Law on the Mandatory Use of the Turkish Language by Commercial Enterprises, transactions, correspondence and agreements executed in Turkey must be in Turkish. While it is common practice to execute transaction documents in foreign languages, the law is still honoured by Turkish courts. Turkish and foreign companies should therefore be aware of the legal consequences of non-compliance.

Liabilities of members of board of directors in joint stock companies
Aykan Acar Ergönen Law Firm
  • Company & Commercial
  • Turkey
  • April 18 2016

A joint stock company incorporated under Turkish law is managed and represented by a mandatory body of the company, its board of directors. Members of the board of directors owe the duties foreseen by the relevant legislation and the company's articles of association and are liable for losses incurred by the company, its shareholders and creditors due to any breach of these duties.

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